Business Standard

5 years of GST: Profiteering charges leave many companies perplexed

No structured guidelines for firms to avoid profiteering; standard method to compute undue profits, say experts

GST
Premium

The provisions in the Central GST Act state that reduction in GST rates or the benefit of ITC must be “commensurately” passed on to consumers.

Nikunj Ohri New Delhi
The National Anti-Profiteering Authority (NAA) is hearing a case against a real estate company, which has allegedly not been passing on the benefit of input tax credit (ITC), arising out of goods and services tax (GST), to homebuyers.

The investigating body for this -- the Directorate Generate of Anti-Profiteering (DGAP) -- shot off e-mails to more than 500 buyers, asking them if they got the benefit of ITC through cost reduction, and whether the discount was communicated to them as rate reduction due to GST. Over 50 responses were received. Of those, 40 said they had benefited from GST rate

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 24 2022 | 5:34 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com